tiprankstipranks
Trending News
More News >
Avation (GB:AVAP)
LSE:AVAP
Advertisement

Avation (AVAP) AI Stock Analysis

Compare
12 Followers

Top Page

GB:AVAP

Avation

(LSE:AVAP)

Select Model
Select Model
Select Model
Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
156.00p
▼(-0.64% Downside)
Avation's overall stock score is primarily impacted by its financial performance, which is hindered by high leverage and negative profitability. Technical analysis further indicates weak market momentum. Valuation concerns arise from a negative P/E ratio and low dividend yield, suggesting limited attractiveness for investors.

Avation (AVAP) vs. iShares MSCI United Kingdom ETF (EWC)

Avation Business Overview & Revenue Model

Company DescriptionAvation (AVAP) is a leading aircraft leasing company that specializes in the acquisition and leasing of commercial jets to airlines worldwide. The company operates primarily in the aviation sector, focusing on providing tailored financial solutions for airlines by offering a diverse fleet of aircraft, including regional jets and turboprops. Avation's core services involve leasing aircraft on a long-term basis, allowing airlines to optimize their fleet management and operational efficiency without the capital expenditure associated with purchasing aircraft outright.
How the Company Makes MoneyAvation generates revenue primarily through the leasing of its aircraft to airlines. The company enters into long-term lease agreements, which provide a steady stream of rental income. Additionally, Avation benefits from the sale of aircraft at the end of their lease terms, capitalizing on any appreciation in asset value. Key revenue streams include fixed lease payments and potential maintenance reserves collected from lessees. The company also engages in strategic partnerships with airlines and manufacturers, enhancing its operational capabilities and expanding its customer base. Factors contributing to its earnings include the demand for air travel, fleet utilization rates, and effective asset management strategies.

Avation Financial Statement Overview

Summary
Avation's financial performance is challenged by a negative net profit margin and high leverage, despite operational efficiency and potential revenue recovery. The company needs to improve profitability and reduce debt reliance.
Income Statement
45
Neutral
Avation's income statement shows a mixed performance. The company has a strong EBIT and EBITDA margin, indicating operational efficiency. However, the net profit margin is negative, reflecting a net loss, which is a significant concern. Revenue growth is positive, suggesting potential recovery, but the volatility in gross profit margin over the years indicates instability in cost management.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio, suggesting significant leverage, which poses a financial risk. The return on equity is negative, indicating that the company is not generating sufficient returns for its shareholders. The equity ratio is relatively low, further highlighting the reliance on debt financing.
Cash Flow
50
Neutral
Cash flow analysis shows a decline in free cash flow growth, which is concerning. However, the operating cash flow to net income ratio is positive, indicating that the company is generating cash from its operations. The free cash flow to net income ratio is also favorable, suggesting efficient cash management despite the net losses.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue112.55M89.48M92.69M109.84M110.79M
Gross Profit112.55M-3.83M-14.31M3.05M116.67M
EBITDA98.94M29.70M20.48M40.80M79.44M
Net Income-7.72M19.73M12.19M17.13M-84.89M
Balance Sheet
Total Assets1.10B1.14B1.18B1.22B1.28B
Cash, Cash Equivalents and Short-Term Investments58.26M34.31M37.28M122.89M122.47M
Total Debt652.34M675.50M755.98M828.13M947.64M
Total Liabilities858.09M885.92M937.96M989.93M1.13B
Stockholders Equity243.84M256.39M243.93M227.09M156.94M
Cash Flow
Free Cash Flow67.81M81.56M48.38M54.46M62.18M
Operating Cash Flow91.50M81.57M48.39M54.48M62.28M
Investing Cash Flow-24.73M13.21M38.52M65.62M20.08M
Financing Cash Flow-42.23M-96.03M-97.36M-109.90M-92.59M

Avation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price157.00
Price Trends
50DMA
160.32
Negative
100DMA
158.72
Negative
200DMA
151.59
Positive
Market Momentum
MACD
-0.87
Positive
RSI
41.27
Neutral
STOCH
15.51
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVAP, the sentiment is Negative. The current price of 157 is below the 20-day moving average (MA) of 160.76, below the 50-day MA of 160.32, and above the 200-day MA of 151.59, indicating a neutral trend. The MACD of -0.87 indicates Positive momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 15.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AVAP.

Avation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£140.80M2.9041.54%12.72%-3.35%2.48%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
55
Neutral
13.744.33%27.00%-0.08%-46.28%
48
Neutral
£101.60M-19.80-3.12%0.80%15.95%-136.18%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVAP
Avation
157.00
-18.18
-10.38%
GB:AA4
Amedeo Air Four Plus
63.50
26.50
71.62%
GB:DNA3
Doric Nimrod Air Three
62.25
9.49
17.99%

Avation Corporate Events

Dividends
Avation PLC Announces Interim Dividend Currency Exchange Rate
Positive
Oct 22, 2025

Avation PLC has announced the currency exchange rate for its interim dividend payment, with shareholders receiving either 1.0 US cent per share or 0.749732 pence per share, depending on their currency election. The dividend will be distributed on 30 October 2025 to shareholders recorded by 17 October 2025, reflecting the company’s stable operations and commitment to shareholder returns.

The most recent analyst rating on (GB:AVAP) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Avation PLC Launches $1 Billion GMTN Programme
Positive
Oct 21, 2025

Avation PLC has announced the establishment of a new US$1 billion Global Medium Term Note Programme, with an initial issuance of $300 million in senior notes due 2031. This move is aimed at refinancing existing senior notes due in 2026 and covering related transaction fees, potentially strengthening Avation’s financial position and offering flexibility in managing its leasing operations.

The most recent analyst rating on (GB:AVAP) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Avation PLC Launches US$1 Billion Global Note Programme
Positive
Oct 21, 2025

Avation PLC has established a new US$1 billion global medium-term note programme through its subsidiary, Avation Group (S) Pte. Ltd., with HSBC and Wells Fargo Securities as initial dealers. This initiative aims to enhance Avation’s financial flexibility by allowing the issuance of notes in various currencies and interest rates, potentially strengthening its market position in the aircraft leasing industry.

The most recent analyst rating on (GB:AVAP) stock is a Hold with a £160.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Dividends
Avation PLC Announces Dividend Currency Options for Shareholders
Positive
Oct 15, 2025

Avation PLC announced that shareholders will receive dividends in pounds sterling by default unless they elect to receive them in US dollars by submitting a currency election form by 20 October 2025. This announcement ensures clarity in dividend distribution and offers flexibility to shareholders, potentially enhancing shareholder satisfaction and engagement.

The most recent analyst rating on (GB:AVAP) stock is a Hold with a £157.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Avation PLC Plans Investor Meetings for Potential Note Offering
Neutral
Oct 6, 2025

Avation PLC has appointed Wells Fargo Securities and HSBC to organize global fixed income investor meetings starting October 8, 2025. The company is considering an offering of US$300-400 million in senior unsecured notes, subject to market conditions, which could impact its financial strategy and market presence.

The most recent analyst rating on (GB:AVAP) stock is a Hold with a £164.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Financial Disclosures
Avation PLC Releases 2025 Audited Financial Statements
Positive
Oct 2, 2025

Avation PLC has released its audited financial statements for the fiscal year ending June 30, 2025. The report, available on the company’s website, reflects Avation’s continued operations in the aircraft leasing industry, with a fully leased and utilized fleet, indicating stable demand and operational efficiency.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Avation PLC Reports Revenue Growth Amidst Strategic Fleet Optimizations
Neutral
Oct 2, 2025

Avation PLC reported a 19.2% increase in revenue to $110.1 million for the year ended 30 June 2025, alongside a 20.3% rise in EBITDA to $107.1 million. Despite these gains, the company recorded a loss after tax of $7.7 million due to reduced operating profit and other financial factors. The company made significant strides in fleet management, acquiring an Airbus A320-200 and selling two ATR 72-600 aircraft, while also extending leases and securing new customers. Avation reduced its net indebtedness by 7.3% and improved its net debt to total assets ratio to 54.8%. The company is focused on refinancing its outstanding unsecured notes and plans strategic growth through its order book of ATR 72-600 aircraft.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Financial Disclosures
Avation PLC to Announce FY2025 Results and Host Investor Call
Neutral
Sep 26, 2025

Avation PLC announced it will release its financial results for the year ending June 30, 2025, on October 2, 2025. The company has scheduled an investor update call on the same day to discuss these results, inviting both current and potential shareholders and stakeholders to participate. This announcement is significant as it provides insights into Avation’s financial health and operational performance, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Delistings and Listing Changes
Avation PLC Announces Admission of New Ordinary Shares
Neutral
Sep 12, 2025

Avation PLC has announced the admission of 47,981 new ordinary shares to the London Stock Exchange’s main market, effective from 12 September 2025. This move increases the total number of ordinary shares in issue to 66,636,738, with 66,421,738 total voting rights, potentially impacting shareholder voting dynamics.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £275.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and StrategyM&A Transactions
Avation PLC Completes Profitable Sale of Boeing 777 Aircraft
Positive
Sep 9, 2025

Avation PLC has completed the sale of a Boeing B777-300ER aircraft leased to Philippine Airlines, capitalizing on favorable market conditions to generate a significant profit above book value. The sale aligns with Avation’s strategy to reduce debt and re-invest in narrowbody aircraft, enhancing its portfolio management and risk reduction efforts.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £180.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and StrategyDelistings and Listing ChangesPrivate Placements and Financing
Avation PLC Issues New Shares Following Warrant Exercise
Neutral
Sep 4, 2025

Avation PLC has announced the issuance of 47,981 new ordinary shares following the exercise of its listed warrants, representing approximately 0.07% of the company’s enlarged capital. The new shares will be admitted to trading on the London Stock Exchange, with dealings expected to commence around 10 September 2025. This move is part of Avation’s strategy to manage its capital structure and enhance liquidity, potentially impacting shareholder voting rights and the company’s market positioning.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £180.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Avation PLC Announces Share Warrant Grant to Directors and Employees
Neutral
Sep 4, 2025

Avation PLC has granted 655,000 share warrants to its directors and employees as part of its long-term incentive plan, following shareholder approval at the last annual general meeting. This grant, which includes a three-year vesting period, is intended to align with the company’s Remuneration Policy and could impact the company’s share capital structure, with a potential increase in issued capital upon full exercise of these warrants.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £180.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and StrategyProduct-Related Announcements
Avation PLC Signs Lease Agreement with SUM Air for ATR 72-600
Positive
Sep 3, 2025

Avation PLC has signed a lease agreement with South Korean airline SUM Air for a new ATR 72-600 aircraft, which will be delivered in November 2025. This aircraft will be the first in SUM Air’s fleet, marking an expansion in regional air travel in South Korea and highlighting Avation’s commitment to sustainable aviation.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £180.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Avation PLC Receives B Credit Rating from Fitch
Neutral
Jul 31, 2025

Avation PLC has been assigned a B long-term issuer default rating by Fitch Ratings, with HSBC acting as the sole Ratings Advisor. This credit rating could influence Avation’s financial operations and market positioning, potentially affecting stakeholder perceptions and future business opportunities.

The most recent analyst rating on (GB:AVAP) stock is a Buy with a £285.00 price target. To see the full list of analyst forecasts on Avation stock, see the GB:AVAP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025